Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Scotiabank analyst Meny Grauman is not convinced that a Bank of Canada rate cut will have sustainable benefits for bank stocks,
“If we compare the best-performing Big Six bank stock this earnings season against the worst-performing stock this earnings season , we get a delta of roughly 970 bps. Results generally came in better than expected, although clear signs of credit stress emerged as a result of the “higher for longer” rate environment.
“With the development of Small Modular Reactors , datacenter incremental increase in power demand, plant lifetime extensions, coal-to-nuclear switching, and plant restarts, a substantial upward revision of uranium demand by utilities across the US could be tangible. Additionally, the ban on Russian nuclear fuel is a destabilizing factor for uranium markets … We remain tactically bullish on uranium markets.
This is clearly good news for Cameco Corp., but oddly the company was not mentioned in Citi’s research report.BofA Securities equity linked analyst Benjamin Bowler argued that wea re not yet in a technology asset bubble, “Volatility rising along with asset prices is among the clearest signs of an asset bubble. This is due to several factors including asset prices de-coupling from fundamentals and fundamentals themselves becoming more uncertain. Looking at nine asset bubbles since the 1920s, volatility rose in every instance ahead of the market peak. U.S. equity momentum near 100yr highs earlier this year and the dominance of just a handful of US tech stocks have some fearing a bubble.
Volatility Bank Season Earnings Result Asset Uranium Bank Of Canada Scotiabank Scott Barlow
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